During the Taking of Its Physical Inventory on December 31

Essay

During the taking of its physical inventory on December 31, Almond Supplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000. Indicate the balance sheet effects of the error on inventory, current assets, total assets, and stockholders' equity. Also indicate the income statement effects of the error on cost of goods sold, gross profit, and net income.